India-US Trade Policy Forum

Table of Contents

India-US Trade Policy Forum- Relevance for UPSC Exam

GS Paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

India-US Trade Policy Forum- Context

Recently, the U.S-India Trade Policy Forum (also known as the Trade Policy Forum) was held after a gap of four years.
The 12^thS-India Trade Policy Forum was co-chaired by the Indian Commerce and Industry, and U.S. Trade Representative.
The U.S-India Trade Policy Forum resolved to take economic ties between the two countries to the ‘next high level’ and exchanged views on ‘potential targeted tariff reductions’.

India-US Trade Policy Forum– Key Outcomes

At India-US Trade Policy Forum, they decided to activate working groups of the Trade Policy Forum (TPF) on agriculture, non-agriculture goods, services, investment, and intellectual property.
- Various working groups of the Trade Policy Forum (TPF) are expected to meet frequently and address issues of mutual concern in a mutually beneficial manner.
- Objective: to deliver tangible benefits to farmers and businesses of both countries by resolving outstanding market access issues.
Mutual market access: India-US Trade Policy Forum has decided to forge an agreement to-
- facilitate U.S. market access for mangoes, grapes, and pomegranates, pomegranate arils from India, and
- ensure access to the Indian market to cherries, pork/pork products and alfalfa hay for animal feed from the United States.
Totalisation Agreement: Both sides at India-US Trade Policy Forum agreed on the significance of negotiating a Social Security Totalization Agreement in the interest of workers from both sides.
- Totalisation Agreement proposed under India-US Trade Policy Forum would allow workers from both countries to move their retirement savings.
- Lack of Totalisation Agreement particularly affects Indian IT workers in the U.S. who lose billions of dollars in statutory U.S. social security contributions that they cannot repatriate home.
Collaboration on Multilateral forums: India-US Trade Policy Forum discussed collaboration and constructive engagement in various multilateral trade bodies including the WTO and the G20.
- The collaboration aims for achieving a shared vision of a transparent, rules-based global trading system among market economies and democracies.
- India-US Trade Policy Forum also decided to find mutually agreed solutions on outstanding WTO disputes between the two countries.
Ethanol supply: At India-U.S. Trade Policy Forum, the U.S. indicated an interest in supplying ethanol to India for its goal of 20% ethanol blending with petrol by 2025.
On health: the two sides at India-U.S. Trade Policy Forum decided to partner with allies in developing a secure pharmaceutical manufacturing base and de-risk global supply chains in such critical sectors as health.
On services: the India-U.S. Trade Policy Forum discussed ways in which legal, nursing and accountancy services can facilitate growth in trade and investment.
- The India-U.S. Trade Policy Forum also sought to work together on electronic payment services and the digital economy.
On visa policy: the India-U.S. Trade Policy Forum decided to continue engaging on visa issues to facilitate the movement of professionals, skilled workers, experts, and scientific personnel.